There is a tax advantage to splitting farm income among the members of a family. The more income you have, the higher tax rate you have to pay, so spreading income out among you, your spouse and even your children can have a huge tax benefit. It is fairly common for small business owners to […] Read more
Tag Archives Taking Care of Business
Factors to consider for income splitting on family farm
Tax changes affect small business, shareholder loans
The new Liberal government’s first budget is 269 pages. That’s a lot thinner than in previous years, but there is no lack of tax changes. Here are some ways the budget could affect your farm. The former Conservative government had committed to reducing the federal small business tax rate to nine percent from 11 by […] Read more
RRSPs can make retirement easier
Planning for retirement can be the last thing on a farmer’s mind. The value of the farm and investments that have accumulated over the years quite often leaves little concern about the ability to fund one’s retirement. However, discussions about succession planning or not selling off farm assets can complicate the issue. Using a Registered […] Read more
Combining operations can help families simplify and save
Do you and your family members operate your own individual farming operation? Are your operations interconnected due to combined input purchases, shared or jointly owned assets or shared lending agreements? If this is the case, it could be of value to consider simplifying operations through the transfer of your assets into one entity. That’s not […] Read more
New retirement savings options available for small business owners
Farmers will soon have a new option for tax-effective retirement savings for themselves and their employees. Federal legislation to create Pooled Registered Pension Plans (PRPP) was introduced last fall, has received second reading and has gone to committee. PRPPs are intended to be a broad-based, low-cost, defined pension option that will be available to all […] Read more
Factors to consider when transferring farmland to children
One of the biggest considerations regarding your family farm is how to transfer farm land to your children or grandchildren. As you near retirement, the farm’s assets may be your main source of income and it is important to look closely at the options available to ensure you do not jeopardize your future security when […] Read more
Farm businesses can be protected from marriage breakdown
It’s unfortunate, but marriages do fail. That alone can be cause for sadness, but when a marriage also involves one or both of the partners owning a farming business, it is vital to consider the value of the business and how it can be protected. Failed marriages among adult children involved in a family farm […] Read more
Capital gains exemption helps make most of gains, rollovers
Most people have heard about the capital gains exemption, but they are not always familiar with the benefits the exemption can provide. In particular, producers may not be aware of how their capital gains exemption can be used in conjunction with other tax planning strategies to limit or defer income tax on their farming operations. […] Read more
